Tag Archives: london
UK asking prices down 3.3% in December, latest Rightmove index shows
This year is ending with the largest ever monthly fall in the price of property for sale in the UK with the average asking price down by 3.3%, the latest index figures show. This has reduced annual price growth to 7% compared with 8.5% the previous month and is a further indication of the slowing pace of growth, according to the data from Rightmove. However, it points out that it is important to note that the recovery remains countrywide with all regions recording positive price growth for the year and Rightmove forecasts a national average rise in new seller asking prices in the range of 4% to 5% for 2015. According to Miles Shipside, Rightmove director and housing market analyst, whilst a near £9,000 drop is the biggest ever reduction in the price of newly marketed property compared to the month before and a sign of a market continuing to cool, a fall is not unexpected in December. ‘Though sellers are fewer in number at this time of year, those that do come to market are often keener to sell so price lower in a bid to stand out. The overall picture for the year is still one of a much recovered property market, with sellers and their estate agents confident enough to be putting property on the market at a higher price on average than a year ago, although we predict a slower pace of price growth in 2015. This means that sellers and agents will have to work harder to achieve a sale next year,’ he explained. Rightmove predicts the South East will see the highest growth in prices next year as the London ripple effect continues and stock shortages remain acute. These factors mean that the East and South West regions also look set to perform better than the northern regions. It also says that London will not be the price rise powerhouse leading the rest of the country as it has been in 2014. Sectors of the London market will continue to re-adjust with several different forces at play. Shipside pointed out that affordability has already been stretched to its limit in some inner London locations, and there are also winners and losers with the Stamp Duty changes. The threat of mansion tax on properties over £2 million will remain a deterrent until at least May’s election. While buyer demand has tailed off during the second half of the year, there are now signs of fewer sellers coming to market too. In the last four weeks, 76,823 new sellers have come to market, down 4% on the same period a year ago and the second consecutive month that there has been a year on year fall. Rightmove also says that there are factors that could see this trend continue into 2015, exerting some modest further upwards price pressure. Stricter lending criteria may prevent some home-owners from being able to fund the trade up to the next… Continue reading
New starter home initiative announced by UK government
A new scheme offering 100,000 first time buyers in the UK new homes with a 20% discount has been announced by the Prime Minister as part of a major push to help people onto the housing ladder. Aspiring home owners will be asked to register their interest in buying via the Starter Home initiative from the start of next year, an initiative that has been brought forward by at least six months earlier than planned. There will be a change to the planning system to free under used or unviable brownfield land from planning costs and levies in return for a below market value sale price on the homes built on the site. Developers and councils are being asked to respond to the proposals to ensure the changes will unlock a range of sites across the country. Many of the country’s leading house builders and councils are already looking at sites that could be used for new homes. The 100,000 homes will be available to first time buyers under the age of 40 as part of the initiative and work on the first raft will start next year following a consultation period that is due to end on 09 February 2015. At the heart of the Starter Homes initiative is a change to the planning system. This will allow house builders to develop under-used or unviable brownfield land and free them from planning costs and levies. In return, they will be able to offer homes at a minimum 20% discount exclusively to first time buyers under the age of 40. Currently, builders can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs, often adding tens of thousands to the cost of a site. Under the proposals, developers offering Starter Homes would be exempt from those Section 106 charges and Community Infrastructure Levy charges. The homes could then not be re-sold at market value for a fixed period, making sure that the savings are passed onto homebuyers. Already leading house builders, including three of the nation’s largest and councils from up and down the country have pledged their support for the initiative, which will bring much needed homes onto sites that have previously been deemed unviable and are lying unused. More than 30 house builders have said that that they support the plans and would consider bringing forward land to develop the new, discounted houses, from next year. A new design panel, including world famous architects such as Sir Terry Farrell and Sir Quinlan Terry will be established to ensure that new homes are not only lower cost but also high quality and well designed, giving hardworking house buyers attractive homes that meet the demands of modern life. ‘Hard working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that. Under this scheme, first-time buyers will… Continue reading
Return of foreign buyers to Italian property market set to continue in 2015
The last year has been a good one for the Italian real estate market and going into 2015 there are still good buys to be found in many areas, it is claimed. ‘If the first quarter of 2015 is as busy as the first quarter of 2014 then this will be a very positive sign indeed and I can see no reason why not. The Euro is weaker against the Pound which is a great advantage and of course encourages clients to purchase more readily,’ said Linda Travella, who has been working in the country’s real estate industry for over 20 years. She has picked Puglia, Lake Como and Tuscany as the most popular areas for overseas buyers in 2014 and is certain this will continue into 2015 and pricing at the right level will still be the key to getting a sale. ‘The Tuscan market was hit the worst in the 2008 crash and that means that the possibility of finding a good buy in Tuscany is still excellent. If clients put their property on the market at an inflated value it will not sell as there are too many sellers prepared to negotiate to obtain a sale from a buyer who has the cash,’ she explained. She points out that it is possible, for example, to buy a fully renovated two bedroom apartment close to Volterra furnished or unfurnished with shared pool, starting from as little as €260,000. She predicts that British buyers will return to Lake Como in 2015 while Russian buyers have decreased. But Swiss and German buyers are still strong. Overall she expects the €500,000 plus market to be more buoyant in 2015. Sales at the lower end of the market are expected to be strong. ‘The market at €150,000 and under returned in 2014 and I see this trend continuing. Why leave your money in the bank or building society and receive hardly any interest, shares also lost value between April and October 2014 so an investment in property seems a much better option,’ said Travella. ‘I think the first quarter of 2015 will show a great deal of interest with clients viewing in February, March and April. We are seeing more interest from the UK market than in the past five years with the Europeans still also very interested buyers,’ she explained. ‘The US market seems to be also showing some interest compared to the past years with some clients already talking of viewing in the first and second quarters,’ she added. Her firm Casa Travella has also seen a huge surge of interest in 2014 in property in Puglia but many buyers were ‘just looking’. However, she expects these buyers returning to purchase in 2015. She also believes that The Dolomites could be an up and coming area in 2015 as property is hard to find but a great investment and not just for skiing. Her other top tip is Southern Le Marche where property by the… Continue reading
